Revised Law on Credit Institutions to cover bad debt recovery

The Government has directed the State Bank of Việt Nam (SBV) to add non-performing loan (NPL) settlement regulations under Resolution No.42/2017/QH14 into the revised Law on Credit Institutions, SBV’s deputy governor Nguyễn Kim Anh said on Wednesday.

PM calls for continued restructuring of credit organisations Prime Minister Nguyễn Xuân Phúc has requested the banking system work to enhance the reform of the credit organisation system in line with bad debt settlement while supporting socio-economic recovery and development amid the impact of COVID-19.

Lawmakers divided on debt collecting firms Many said debt collecting is a legitimate demand of society and should be allowed to operate.

Basis to believe in Vietnamese economic growth

Despite lowering the economic growth forecast of Asia, the Asian Development Bank (ADB) revised the Vietnamese GDP growth forecast from 6.8 per cent to 6.9 per cent for 2019 and from 6.7 per cent to 6.8 per cent for 2020.

VMAC builds strategy for debt trading The Việt Nam Asset Management Company is planning to develop a new strategy for buying and selling bad debts in Việt Nam this year, in which it will play a central role to promote the development of the debt trading market.

Government should be streamlined Professor Dr Lê Minh Thông, an aide to Nguyễn thi Kim Ngân, National Assembly Chairwoman, speaks to the media on key changes in the Law on Government Organisation and the Law on Local Governments.

Funding capacity, asset quality of banks improves The financial capacity of Việt Nam’s credit institutions has solidified in recent years, with their charter capital reaching VNĐ578.9 trillion (US$24.85 billion) by the end of the first quarter 2019.

Credit institutions recover nearly $8.8b of bad debts Credit institutions in Việt Nam settled more than VNĐ204.4 trillion (US$8.77 billion) of non-performing loans (NPLs) by the end of the first quarter this year, said Nguyễn Thị Hồng, deputy governor of the State Bank of Việt Nam (SBV).

Foreign investors set their sights on poorly-performing banks Foreign financial institutions were eyeing up poorly-performing Vietnamese banks after being given the green light to acquire stakes in local institutions in a move to speed up the restructuring of the country’s banking industry, according to banking expert Nguyễn Trí Hiếu.

New policy to speed up bad debt settlement

The central bank is drafting a new circular regulating credit institutions’ trading and handling of non-performing loans (NPL) with the aim of forcing the institutions to focus more on bad debt settlement.